The company: life’s a gas station

TDR Capital-backed EG Group, the petrol station with convenience store operator co-founded by brothers Mohsin and Zuber Issa in Blackburn almost 25 years ago, is gearing up for a NYSE listing. The estimated value of the business at IPO is put at $13bn. Zuber Issa told the Sunday Times last month that the starting pistol had been fired on the process and EG shares would debut in New York later this year or the start of next. The choice of the US might be something of a blow to the London Stock Exchange: Zuber Issa told the FT that despite the business’s roots in northern England, more than half its earnings were now in the US, hence the choice. Its closest rivals are listed in North America – Canada’s Alimentation Couche-Tard and Nasdaq-listed Casey’s. In recent years, EG has sold the bulk of its UK convenience stores and petrol forecourts to the supermarket group Asda.

The personalities: rag trade to riches

So who are the Issa brothers? Mohsin (above) and Zuber Issa were born in Blackburn within a year of each other in the early 1970s to Gujarati Muslim parents, who’d come to the UK in the 1960s to work in the town’s textile industry. Their parents later ran (but didn’t own) a petrol station. 

In 2001, they co-founded Euro Garages, now EG Group, borrowing to buy a petrol station in Bury. As oil majors (such as Esso) offloaded forecourts, EG acquired them and expanded the retail and food convenience offerings. In October 2015, private equity firm TDR Capital acquired a minority stake in EG for £1.3bn. Continuing with this debt-fuelled model for expansion, the business has grown organically, increasing value-add through its convenience store offering, 10 corporate and numerous forecourt acquisitions.

In October 2020, TDR and the Issa brothers took over Asda (which is now just owned by TDR and Mohsin Issa, as Zuber Issa has divested himself of his shareholding). They acquired the supermarket chain for £6.8bn from Walmart, returning it to British hands after more than 20 years.

For the year to 31 December 2024, EG’s underlying EBITDA grew 9% to $992m, with EBITDA for its US business growing 17%. It has been going through a process of non-core divestments to strengthen its balance sheet.

TDR and the Issa brothers currently own around 50% of EG, which now operates 5,600 sites in nine countries. The brothers are worth £5bn according to the Sunday Times Rich List, making them the 39th richest family in the UK.

The details: flights of fancy

There has been controversy, too. In 2020, Deloitte quit as EG’s auditor, citing governance issues, while the group stated there were no auditing disagreements. In January 2021, former M&S CEO Lord Rose was appointed non-executive chairman to help improve governance. KPMG replaced Deloitte as auditor.

And in 2023, EY quit as Asda’s auditor because of a personal relationship between Mohsin Issa and EY tax partner Victoria Price. She has since left EY, but did not work on EG assignments. Then, in July of that year, Mohsin Issa appeared before the parliamentary business and trade committee to answer questions on Asda’s fuel pricing and employment strategies. Questions were repeatedly not answered. Darren Jones MP, Labour chair of the committee, said: “Prices are up at Asda, tax is down, pay is down, money is being taken through a very complicated set of business structures to offshore companies, and you’ve not answered any of our questions.”

In March, it was reported in the FT that EG had to write off a £30m investment in Glasgow-headquartered start-up Hydrogen Vehicle Systems. The brothers also received criticism when it was revealed they had received more than £40m in unsecured loans from EG to buy two Bombardier jets.